China furniture market has been growing rapidly in recent years. The annual compound growth rate of the 2006-2016 years is about 17%. It is the world’s first furniture producer, consumer and exporter. In the past 2016-2017 years, the sales of real estate in China grew rapidly. The sales of furniture industry lagged behind the sales of real estate for about 1 years. In 2017, the sales of furniture industry increased significantly. As of September 2017, the total revenue of China furniture manufacturing industry was 674 billion 770 million yuan, an increase of 11.10% over the same period last year, up 3.2 percentage points from the same period last year. The total profit of the industry is 40 billion 430 million yuan, up 11.20% over the same period last year, a 0.5 percentage point increase over the same period last year. The furniture industry is promoted by the real estate sales, and the revenue and profit are promoted synchronously.
In 2017, China real estate subject to around the purchase of the policy, the sales growth of all the way down, as of September 2017, China’s real estate sales area of 1 billion 160 million 61 thousand and 600 square meters, an increase of 10.30% over the same period last year, the growth rate fell 15.6 percentage points; real estate sales of 9 trillion and 190 billion 353 million yuan, an increase of 14.60% over the same period last year, the decline in the growth rate of 26.7%. Although the growth rate of real estate sales has declined significantly, the increment of the past year has stabilized support for furniture industry demand side in 2017, but if this downward trend is maintained, the growth of furniture industry will be affected.
At present, China furniture consumer groups mainly concentrated in the 25-35 years of age, so consumers often just married or in early marriage, for the purchase or update the greater demand for furniture. In 2016 as the base year, the 25-35 year old man was born in 1981-1991 years, the average birth rate of this period is 21.3%, which is the highest value since China’s reform and opening up, especially during the 1986-1990 years, China’s average birth rate reached 22.2%, which explains the number of China in the past 5 years 25-30 years the proportion of the total population showed a rising trend year by year. For the 25-30 year old, they will still be one of the main forces of furniture consumption in 5 years, providing an objective support for the increase in the demand for the furniture market.
In 2017, custom furniture industry demand side to obtain stable support, the overall performance of listed companies rose sharply, custom furniture achieved a total revenue of 20 billion 58 million yuan, an increase of 36.22%, owned by the parent net profit of 2 billion 388 million yuan, an increase of 38.98%, gross margin 38.21%, down 0.84 percentage points. Industry demand is stable support, revenue, profit increased significantly over the same period, but the industry is still growing, the competition is fierce, the overall gross interest rate is low.
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